Volkswagen in talks to buy stake in EV joint venture partner JAC
By Nikita Chaurasia  Date: 2019-04-11

Volkswagen in talks to buy stake in EV joint venture partner JAC

Apparently, JAC has been in discussions with VW for quite a while now, on extending its collaboration with the German giant on new energy vehicles.

Germany-based automotive conglomerate, Volkswagen AG, has apparently made it to the headlines for having announced that it plan to explore the purchase of a huge stake in JV partner JAC Motors. Authentic reports claim that VW’s move follows the initiatives taken by its fellow rivals Daimler and BMW to strengthen their dominance in the Chinese automotive industry.

As per sources familiar with the knowledge of the matter, VW is now keen to strengthen its ownership in the world’s largest automobile market, post the relaxation of regulations by Beijing last year. With this move, JAC is likely to emerge as one of the most pivotal contenders to help VW in its long-term goal concerning EVs. Indeed, it has been speculated that VW may shift some of its planned EV production in China to JAC in the event that the proposed take acquisition comes to fruition.

According to an official claim by VW, the company has been treading on a cautious path as far as the implications on its business as well as its JV partners are concerned. The statement also affirms that the company plans to explore all the available options with its stakeholders to ensure long-term success in China,

An official statement by VW’s Chinese electric vehicle joint venture partner claims the company to have stated that JAC has been in talks with the German conglomerate for quite a while now, pertaining to the extension of the JV agreement on new energy vehicles. No formal plan has taken shape so far, however, claims an anonymous source.

American investment bank Goldman has apparently been selected by Volkswagen to advise the automotive giant regarding the proposed buyout. Goldman has not publicly commented on VW’s purchase yet.

For the uninitiated, Volkswagen boasts of a market capitalization of almost USD 85 billion, however, the company has no shares in JAC, reported to be valued at USD 1.9 billion.

About Author

Nikita Chaurasia    

Nikita Chaurasia

An accomplished professional in the field of content development, playing with words comes naturally to Nikita Chaurasia. After completing her post-graduate MBA degree in Advertising and PR, Nikita worked across numerous content-driven verticals, undertaking diverse r...

Read More

More News By Nikita Chaurasia

Top Glove shuts down factories amidst rising COVID-19 cases in Malaysia
Top Glove shuts down factories amidst rising COVID-19 cases in Malaysia
By Nikita Chaurasia

  The company has reportedly ceased its operations after 2453 employees tested positive for the Coronavirus. The company’s shares plummeted by 7.5% after the Malaysian government ordered to shut down 28 of its factories. As per relia...

Belcan becomes software engineering services firm Avista’s new owner
Belcan becomes software engineering services firm Avista’s new owner
By Nikita Chaurasia

Belcan, LLC, a leading supplier of engineering, technical recruiting, supply chain, and information technology (IT) services to various sectors, reportedly announced the acquisition of Avista, Inc., a safety-critical and mission-critical software eng...

Swisscom to install Nokia FastMile 5G Receivers in Switzerland
Swisscom to install Nokia FastMile 5G Receivers in Switzerland
By Nikita Chaurasia

Nokia, the leading Finnish telecommunications giant, has reportedly announced that Swisscom, a renowned Swiss telecommunications firm, would install Nokia FastMile 5G Receivers across rural areas of Switzerland to provide high speed broadband service...

CDC funds $1.5 Mn for co-robots; aims to reduce worker exposure
CDC funds $1.5 Mn for co-robots; aims to reduce worker exposure
By Nikita Chaurasia

Projects developed through this grant is expected to be used in developing collaborative robots for use in the manufacturing and healthcare industries. With over more than 5000 workers losing their lives due to work-related injury in the United ...

Telia & Ericsson join hands to launch Estonia’s first 5G network
Telia & Ericsson join hands to launch Estonia’s first 5G network
By Nikita Chaurasia

Telia, a Swedish multinational telecommunications company, will be the first one to begin 5G in the country which will be powered by Ericsson 5G technology. With this move, the company will be enabling innovation for businesses and provide high-speed...